VOF - General partnership

VOF - General partnership

A vennootschap onder firma, or general partnership, is a business that is run by two or more business partners. A defining aspect of the VOFis that every partner contributes something to the business, whether it’s labour, capital, assets, goodwill or knowledge. This model is often used by spouses or life partners who are also partners in business.

It’s important to understand the joint liability of a VOF: if your business partner makes a mistake that results in debt then you will also be held financially responsible.

In a VOFit’s also necessary to create "separate capital" where business capital contributed by partners is held separately from private capital. For instance in a separate bank account.

The VOFcontract

It’s not legally compulsory to sign a partnership contract when setting up a VOF, however it is strongly advised to avoid misunderstandings between partners. This can be done either independently or via a notary. The partnership contract usually sets out: